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The U.S. hotel industry delivered strong performance in the first quarter of 2025, though economic uncertainty has cast a shadow over full-year projections.
Most leading hotel companies reported increases in revenue per available room (RevPAR) during Q1. However, several have revised their full-year RevPAR forecasts downward, citing ongoing market instability. Contributing to the cautious outlook are recent government actions, including tariffs introduced by President Donald Trump, which have disrupted market conditions and shaken traveler confidence.
Adding to the challenges, the World Travel & Tourism Council reported a significant decline in international travel to the U.S. in March. The drop in inbound tourism is expected to result in a $12.5 billion loss in international visitor spending for the year.
Despite these headwinds, hotel development remains a bright spot. Many companies expanded their property portfolios and development pipelines during the quarter, signaling long-term confidence in the sector.
Hotel Dive has compiled a summary of Q1 2025 earnings reports from major hotel brands, offering insights into emerging hospitality trends and what to expect for the remainder of the year.
Source: hoteldive.com